Japan’s convenience store operator Lawson will offer Chinese shoppers reward points via a mobile app, starting in December.
Use mobile app to drive loyalty
Lawson has launched its mobile app Lawson Diandian which offers coupons and latest in-store offers. As a further development of the app, Lawson will embed its loyalty reward system to the app.
Each yuan spent is expected to earn shoppers 10 reward points exchangeable for store credit, likely at the rate of 1,000 points for 1 yuan (15 cents). More frequent Lawson shoppers may receive even more points for their purchases.
In addition to the point system, the app will enable Lawson to analyse users' purchases, so that it can use the data to design sales campaigns and develop new products. Lawson is weighing similar efforts in other foreign markets.
Up-weight operations and continue expanding in China
Lawson's overseas network exceeded 1,000 stores at the end of October and is rapidly expanding in China via franchise deals, particularly in Shanghai. That city alone has more than 300,000 registered users of Lawson's app - a group that tends to shop more frequently than non-members.
However, Lawson's overseas operation is struggling to make profit on the whole and lags behind rivals' in scale. Lawson will work with trading house Mitsubishi Corp., which plans to become the retailer's parent in January, to pursue a goal of having between 3,000 and 5,000 overseas stores in 2020.
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